Financial accounting is a significant aspect of any business operation. Businesses must maintain accounting records of financial transactions, and these records are subject to constantly evolving legal and regulatory requirements. Maintaining accurate accounting records that comply with these requirements is time-consuming and a significant cost driver for businesses. Resources that businesses commit to accounting are generally considered overhead expenses, which detract from the profitability of business operations.
Corporations may incur additional costs in maintaining accounting records across large or diverse operations. The accounting methods needed for these operations may be subject to different legal and regulatory requirements based upon the jurisdictions where the corporation has facilities or where the operations take place. Common sets of accounting practices, principles, standards, and procedures that companies use may be referred to as Generally Accepted Accounting Principles (“GAAP”). For example, the United States employs a financial accounting framework known as “U.S. GAAP.” Other jurisdictions may require accounting practices to comply with the International Financial Reporting Standards (“IFRS”). The need to comply with one or more accounting practices increases costs for businesses encountering varying accounting requirements by operating in multiple countries or jurisdictions.
Accordingly, there is a need for business accounting solutions that accurately maintain records of transactions in accordance with the relevant accounting practices. An accounting solution that balances the needs of businesses to efficiently and cost-effectively maintain such records in compliance with legal and regulatory requirements is particularly desired.